John Campbell: Sure. On the Title field staff, I mean, I think Q2 marks the first sequential increase you guys have seen maybe since 3Q of 2021. This is probably a pretty obvious question or an obvious observation, but what you guys are seeing in the pipeline and just given how much volumes have dropped, I think it’s a pretty clear signal, but are you guys still going to keep bottom out here? Is that a pretty fair assessment?
Mike Nolan: John, I missed the very beginning of your question. Could you repeat it, please? I’m sorry.
John Campbell: Yes, no problem. On the Title field staff, 2Q for the first time. Yes.
Mike Nolan: Yes. So, I think as we talked about in the script that we kind of took 26% out last year. We had some modest reductions in the first half, and we were watching staffing very closely and really looking at that in the lens of where we’re going to get the sequential improvement in residential, which we absolutely got, which was great. And given the rates, I think, kind of a welcome development. I think as we go into the back half of the year, we’ll look at staffing very closely related to the order volumes. We would expect to get sequential declines in particularly our purchase open orders just like we have in just about every other year. And we’ll – we may need to make some adjustments accordingly and really want to be in a good position as we go into 2024 to deal with, which is typically a seasonally tough first quarter and then really have the company in a great position to take advantage of improving order volumes.
John Campbell: Okay. Makes sense. And then related to the last question, I mean, year-to-year, a lot continues. So it’s hard for you guys to really pinpoint Title pretax margins. But quarter-to-quarter, you get a little bit more visibility. You guys are sitting here halfway through the quarter now, you’ve got a book of business that is going to give you some insight on what remains. But my question here is, if you assume just kind of a modest sequential drop in revenues in the 3Q. You guys just posted a 15.8% Title pretax margin well ahead of us this quarter, do you think you can get near that mark assuming just a modest drop of revenues into 3Q?
Mike Nolan: Yes. I think there’s a couple of things that – it’s Mike. I think there’s a couple of things that go into it. If it’s a very modest drop in revenue, we should again have very good margins. I think the expenses, as I said before, are in a good spot. What can impact margin and what I’d still be a little bit cautious about is sometimes the mix of agency and direct in the revenue side, can make a difference in margin. As you know, there’s a pretty significant difference between agency gross margins and direct gross margins. So that can clip your margins even if you have the same gross revenue, commercial still needs to come through, I think, as we’ve been expecting it to. And there’s always some concern around that or caution around that, just given the volatility.
We had 10 banks, regional banks that got downgraded this week, does that impact commercials. We move through the back half of the year rates. So – but if other things being equal, if revenue is holding up, I would expect margins to be pretty good in the third quarter. As you get to the fourth, a little bit more seasonal fall off on the residential side and we’ll just have to see where we’re at as we kind of get through the back end of this quarter.
